PLUS and Grad PLUS Loan Repayment
For PLUS Loans disbursed on or after July 1, 2006, the interest rate is fixed at 8.50 percent for FFEL PLUS Loans.
For PLUS Loans disbursed between July 1, 1998 and June 30, 2006, the interest rate is variable and is determined on July 1 of every year. Interest rate information is available from the Department of Education or by contacting your lender. Interest is charged on a PLUS Loan from the date of the first disbursement until the loan is paid in full.
Generally, the first payment is due within 60 days after the loan is fully disbursed. There is no grace period for these loans. Interest begins to accumulate at the time the first disbursement is made. Payment for a FFEL PLUS Loan is made to the lender or loan servicer.
Under certain circumstances, PLUS loans can be deferred. Forbearance may be available if the borrower(s) temporarily can’t meet the repayment schedule as long as the loan isn’t in default. During forbearance, payments are postponed or reduced.
Generally, the conditions for eligibility and procedures for requesting a deferment or forbearance apply to both Stafford Loans and PLUS Loans. However, since all PLUS Loans are unsubsidized, PLUS loan borrowers will be charged interest during periods of deferment or forbearance. If they don’t pay the interest as it accrues, it will be capitalized (that is, added to the principal amount of the loan, and additional interest will be based on that higher amount).
Please contact your lender or loan servicer if you are having difficulty repaying this loan.
Last Updated: 8/2/2010